SETTLEMENT BOLSA DE VALORES NACIONAL, S.A. GUATEMALA

1. SETTLEMENT BOLSA DE VALORES NACIONAL, S.A. GUATEMALA Gabriela Escamilla, Deputy Chief Executive Officer October 8, 2007 ACSDA Leadership Forum

2. Current Trade Settlement Trade Settlement using a Payments System – LBTR Settlement for Book Entry Securities Projects Contents

3. PRESENTATION OF CASHIER´S CHECK CHECK PURCHASE OF A CASHIERS CHECK CHECK REQUESTED BY A STOCKBROKER 5 5 5 0 5 0 5 0 Current Trade Settlement Total = Available + Transit Trade Settlement: Funds: 5 - Securities10 BROKER A BROKER B BANK 1 BVN BVN CONFIRMS THE FUNDS T$ SEL P$ CURRENT Customer CURRENT AVAILABLE AVAILABLE CURRENT CURRENT AVAILABLE P$ T$ AVAILABLE PS PS TS TS 10 10 TRS TRS T$ = Third party Account - Funds P$ = Propietary Account - Funds PS = Propietary Account - Securities TS = Third party Account - Securities TRS = Securities in Transit Account 10

4. Current Trade Settlement

5. Current Trade Settlement

6. Trade Settlement Using a Payments System- LBTR

7. Link with the Payments System - LBTR • In 2006 a Real Time Gross Settlement System with the Central Bank (LTBR) was implemented • Towards the end of 2006 settlements of Term Certificates of Deposit issued by the Central Bank and traded at BVN started using such system • In the short term it is expected that all the securities market transactions will be settled using the LBTR system

8. LBTR Link • The LBTR link to BVN’s Electronic Settlement System (SEL) is partial: Currently, funds transfers from LBTR to SEL are manually inputted while the transfer of funds from SEL to LBTR is automatic. • The following diagram is duplicated for each type of currency used in settling transactions.

9. AMOUNT Broker BanK AMOUNT Broker Account (Own or third party) Accounts Structure at LBTR LBTR Deposit Account Deposit Account Special Settlement Account $ $ $ BANK 1 BANK 2 BVN Broker B CUSTOMER Broker A Payment Instructions Message whereby a Broker or a customer, in its place and by its own account, instructs a bank participating in the LBTR System so that by charging its account, it will transfer funds pursuant to the information contained in such message.

10. SEL Accounts Structure TRF _ transit funds account P$ – Propietary funds account T$ – third party funds account PS – Propietary securities account TS – third party securities account TRS – in transit securities account AS – available securities CCF – account for the consolidation of funds RB y RA – auxiliary receiving account /broker DB y DA – auxiliary delivering account /broker BVN TRF TRF RA $ $ RB DA DB $ $ P$ P$ CCF Broker B Broker A $ $ T$ T$ SEL V PS PS V TS V TS V V TRS TRS V AS AS V V

11. INSTRUCTION TRASFER $ INSTRUCTION Transfer of Funds from LBTR to SEL LBTR Deposit Account Deposit Account Special Settlement Account BANK 1 5 BANK 2 5 BVN Broker B Broker A TRF RB RA TRF 5 P$ P$ 5 T$ DB DA T$ 5 SEL PS PS TRS TS TS TRS AS AS

12. 5 10 Delivery versus Payment Settlement SELLER INITIATES LBTR Deposit Account Deposit Account Special settlement Account BANK 1 BANK 2 5 BVN BROKER B BROKER A TRF RB RA P$ 5 P$ TRF 5 T$ DB DA T$ 5 SEL PS PS AS 10 TS TRS TS AS 10 10 TRS

13. Transfer of funds from SEL to LBTR LBTR Deposit Account Deposit Account Special Settlement Account BANK 1 3 BANK 2 5 2 BVN BROKER B BROKER A TRF TRF RB RA P$ P$ 3 T$ DB DA T$ 5 2 SEL PS PS TS 10 TS AS AS TRS TRS

14. Book-Entry Securities Settlement

15. Book-entry • The Bolsa de Valores Nacional, based on the Securities Market and Merchandise Law developed the rules, procedures and systems for the issuance, trade and settlement of securities recorded by book-entry. • Currently, the book-entry issuance is not mandatory. • The system developed by BVN consists of three registries: • Auxiliary registration by the Issuer (RAE) • General Book-Entry registration (RGAC) • Specific Book-Entry registration (REAC) • System of private auctions: a service that is offered to issuers who use book-entry

16. Legislation on Book-Entry • Issuance of Securities • Article 54 – Securities that are recorded using the book-entry system are set by virtue of the relevant entry in the issuer’s accounting books. The basis for the accounting entry is the legal instrument authorizing the issue. • Article 56: The person who is registered in the issuers accounting books shall be assumed to be the legitimate beneficial owner of the securities that are recorded in the relevant book-entries, and that person shall exercise the entitlements which said securities confer.

17. Auxiliary Registration by the Issuer (RAE) • A register which appears in the issuers accounting, and in which all book-entries are recorded using a chronological order. • This is an informative register, in such a manner that the issuer cannot insert nor modify the information. • The issuer that is part of the same system has access to the following detailed information: • Placements • Terms • Maturity • Schedule of payments • Investors

18. General Book-Entry Registration (RGAC) • The registration is handled by BVN, in which the balances of the stockbrokers are held. • The RGAC has the general information of all securities placed by the stockbrokers with separate accounts: one for its own accounts and another one for third parties.

19. Specific Book-Entry Registration (REAC) • A registration handled by each separate paying stockbroker, which includes a detailed identification of the beneficial owners in the respective book-entries. • The stockbroker is the one who inserts the identity of beneficial owner of the securities. • The ownership and amount inserted in the REAC are fed automatically into the RAE.

20. Inmediately, BVN’s CSD will deliver a copy of the Certificate of Acquisition to the buying stockbroker, who shall give it to its client • The seller stockbroker delivers the funds to the Issuer • The buying stockbroker proceeds to deliver the funds. 5. Simultaneously: • The system affects both the RGAC and the REAC. • The selling stockbroker receives the funds. • The RGAC proceeds to print the Certificate of ACquisition. • The Issuer’s RAE is affected. BVN TRADING SYSTEM $ BVN’S CSD RGAC SOLD $.3 MILLION PENDING $.47 MILLION ISSUER $ $ ISSUER’S AUXILIARY REGISTRATION DETAILED RGAC SOLD $.3 MILLION (Securities Inc.; John Doe) STOCK BROKER PENDING $.47 MILLION DEBTS REAC–SECURITIES, INC. $ $ CERTIFICATE OF ACQUISITION CERTIFICATE OF ACQUISITION • An operation is registered at the Stock Exchange. The Exhange’s electronic system generates a copy of the registry of such operation. • The operation is sent to the settlement system. • The buying stockbroker designates the account to which the securities shall be credited (Negociations system /Settlement system). Securities, Inc buys $.3 million from this issue on behalf of its client, John Doe. ISSUE $.100 MILLION CERTIFICATE OF ACQUISITION SECURITIES INC, OWN – 0 SECURITIES INC, CLIENTS – $.3 MILLION JOHN DOE – $.3 MILLION JOHN DOE – $.3 MILLION

21. Projects

22. Projects • Separation of the Central Securities Depository and open it to new shareholders • Registration of Foreign Shares and ETF’s so that they may be traded and settled through the Stock Exchange • Certification of the systems being processed

23. SETTLEMENT BOLSA DE VALORES NACIONAL, S.A. GUATEMALA Gabriela Escamilla, Deputy Chief Executive Officer October 8, 2007 ACSDA Leadership Forum